Can Green Cars Keep Skies Blue and Pockets Full? Confused.com Finds Out.

Publication Date: Saturday, August 02, 2008

If Olympic athletes find themselves coughing and spluttering in Beijing, air quality could be to blame. In fact, things are so bad that authorities have ordered millions of cars off the road for the duration of the games. Of course, vehicle pollution is a global problem, which is why some people are switching to ‘green’ cars. But even though such motors are kind to the environment, are they also kind to that other perennial worry – our finances? Confused.com takes a look. 

Hybrid Cars  

Hybrid cars have two engines: electric and petrol. The electric engine is used when the car is travelling slowly and the petrol motor sparks into action as the vehicle speeds up, and battery recharging occurs when brakes are applied. Hybrids are ideal for commuters who spend long periods stuck in traffic, and are of particular environmental benefit if that traffic happens to be in a city.  

Popular models include the Toyota Prius and the Honda Civic Hybrid, both costing in the region of £17k. There isn’t a non-hybrid Prius but petrol-powered Civics start at around £13.5k – so the green alternative is considerably more expensive.  

However, both hybrids do win a gold medal for fuel-economy, the Prius racking up a combined fuel figures of 65.7 mpg and the Civic, 61.4 mpg. Plus all hybrid vehicles benefit from cheap car tax (currently just £15 a year), and Londoner’s can further benefit by paying £10 a year to register for an exemption from the London congestion charge. Several councils also reduce the cost of parking permits for hybrid cars.  

Hybrids are all the rage in Hollywood too. Environmentally-conscious celebrity owners include Julia Roberts, Cameron Diaz, Leonardo DiCaprio, Barrack Obama and, er, Paris Hilton. 

Electric Cars

In the UK, the carbon-neutral, zero emission Reva G-Wiz is the greenest car on the road. Prices start at just over £9,000 and it’s in the lowest car insurance group. On the downside, boy is it ugly.  

Meanwhile, US carmaker Tesla Motors is on a mission to make plug-in power fast and sexy.  

However, their ‘0-60 mph in 3.9 seconds’ Tesla Roadster is definitely not a budget alternative. The cost is $109,000 and should the car become available over here, who dares hazard a guess at what the cost of electricity will be at that time. Celeb fans of the very-cool two seater include George Clooney and eBay boss, Jeff Skoll. 

LPG Cars

Liquid Petroleum Gas (LPG) powered cars produce lower emissions and thanks to reduced tax, fuel costs are about half that of petrol.

You don’t need a new vehicle as existing cars can be converted to LPG (conversion starts at around £1,500). If you want to splash out on a new motor, popular models include the Vauxhall Astra and the Citroën C3 and are usually about £1,500 more than their petrol or diesel counterparts. The main drawback of owning an LPG car is having to drive halfway round the country to fill up; although the number of fuel stations stocking LPG is rising. 

All LPG vehicles listed in band four of the Powershift Register are exempt from the London congestion charge when you pay £10 a year to register with Transport for London. Discount parking schemes for LPG cars are available from some councils, and these vehicles will also benefit from a reduction in car tax (the amount depending on which model you go for). 

Biofuel Cars 

Biofuel is derived from plants and produces less carbon dioxide overall than petrol or diesel. Most cars can be converted to run on biofuels such as vegetable oil. Home biofuel kits are available, but you will still have to pay tax on that recycled chip fat that’s now powering your motor. 

In the UK, biodiesel attracts a fuel-tax discount of 20p a litre. The main biofuel car models are the Ford Focus FFV (from around £14k) and the Saab 9-5 Biopower (from £24k). Both cars can also run on petrol: good news as stations selling biofuel are rare, although the situation is improving with Morrisons’ recent entry into this market. These vehicles also attract a reduction on car tax, which will vary by model, and the £10 a year London congestion charge exemption. 

Hydrogen Cars – the future?

As none of these green cars seem to be the perfect solution, the big news is the release of the Honda FCX Clarity, a hydrogen-powered car that is currently available only for lease in California.  

A hydrogen car’s fuel cell produces energy by combining hydrogen and oxygen, with water the only exhaust product – and you don’t get cleaner than that.  

Actress Jamie Lee Curtis has already put her name down for one of these vehicles, though she’s been pipped in the hydrogen/celebrity car race by comedian Will Ferrell, who already drives a BMW Hydrogen 7. 

Green Cars: Pollution Solution or Money Worry? 

The car insurance situation for green cars is quite variable, with some insurance providers offering discounts and others increasing premiums to cover the more expensive repair work. Try shopping around for a great car insurance deal using Confused.com.  

The cost of converting your existing car to run on less polluting fuels, or buying a brand new green vehicle may seem steep in the short term, but it’s worth weighing up against the longer term fuel and tax savings, as well as the environmental benefit.  

With oil reserves drying up and sky-high petrol prices, alternative-power vehicles are the future: especially if we want clear skies for the 2012 Olympics. But if you’re not quite ready to make the change, check out Confused.com’s tips on squeezing the most out of your car’s fuel, to help you save money on your existing petrol or diesel drinker. 

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